By Karin Strohecker and Ritvik Carvalho
LONDON, April 16 (Reuters) - Emerging market central banks
delivered five net interest rate hikes in March, marking the end
of an easing cycle which started in 2019 as central banks in the
developing world grapple with rising inflation pressures.
Across a group of 37 central banks in developing economies,
policy makers in Ukraine, Georgia, Brazil, Turkey and Russia
raised interest rates, many delivering bigger hikes than
expected. This follows a total of two net interest rate cuts in
February. For an interactive version of the graphic, click here https://tmsnrt.rs/3jSycdO.
Analysts said the recent rise in global bond yields had
pushed some central banks into normalising record-low interest
rates.
"We expect several LatAm (Latin American) economies to start
to tighten as well," said S&P Global Ratings analysts in their
monthly report.
"Curves are pricing in hikes over the next 12 months in
several other countries, including Colombia, Chile, Mexico, and
the Philippines (and more hikes in Brazil and Russia)."
The tally between rate cuts and hikes across the group of 37
according to Reuters calculations has been negative or zero
since February 2019. This has been the longest easing cycle
since the 2008 financial crisis and the 2010 euro crisis.
At the peak of the easing cycle in March last year, 27 of
the 37 central banks cut interest rates, trying to protect their
economies as the fallout from the coronavirus pandemic rippled
through markets around the world.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
EM central banks end easing cycle, hike rates for first time in
two years EM central banks end easing cycle, hike rates for
first time in two years https://tmsnrt.rs/329LkoX
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>